Cabinet clears Ordinance to implement Food Security Bill

NEW DELHI: The cabinet has pushed through an ordinance to implement the food security bill that will guarantee that two-thirds of the Indian population will get foodgrain at highly subsidised rates, in a move seen as the ruling coalition's best shot to win next year's elections.

"The food security ordinance was unanimously approved by the cabinet. It will now go to the Rashtrapathi for his assent," K V Thomas, union minister of state for food and civil supplies, said on July 3. After the ordinance, the bill would have to be cleared by the Lok Sabha and the Rajya Sabha. The bill proposes to supply 5 kg of rice, wheat and coarse grains at Rs 3, Rs 2, Rs 1 per kg, respectively, every month to three-fourths of rural population and half the urban population in the country.

The programme would require more than 61 million tonnes of foodgrain and is expected to cost the government about Rs 1,25,000 crore. A food ministry official said there was ample availability of foodgrain and it is for the state governments to act now. "The state governments will now have to identify the beneficiaries on a war footing through an open transparent criteria," the official said. The person expects the programme could take off by August and spread throughout the country within months.

Tabled ahead of the monsoon session of Parliament, the food security bill had been deferred in June and earlier during the budget session of Parliament with both opposition and the ruling United Progressive Alliance leaders demanding a debate on the bill, which will burn a hole in the government's pocket. Research agency Crisil, however, estimates that the Food Security Bill could generate additional savings of around Rs 4,400 this year for each below-poverty-line (BPL) household, which begins to purchase subsidised food.

"This savings equals around 8% and 5% of the annual expenditure of a rural and urban household," it said a release. Under the proposed plan, the poorest of poor households will continue to receive 35 kg foodgrain per household per month under the Antyodaya Anna Yajna at subsidized prices of Rs 1-3 per kg.